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What will happen if an individual perfectly competitive firm charges a price above the industry equilibrium price?
Wiki User
∙ 9y ago
If an individual in a perfectly competitive firm charges a price above the industry equilibrium price this is bad. This company will go out of business quickly because their customers will go find the lower price.
Wiki User
∙ 9y ago
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In a perfectly competitive market while an industry is a price maker an individual firm is a price taker elaborate?
An industry is a price maker because many companies compete and the market dictates the price. Companies are price takers because they can't set the prices. Organizations have to focus on keeping cost low.
Difference between organisation and industry?
An organization is like an individual business and a industry is an larger organization that produce and manufacture goods
Company and industry?
Company is an individual entity. it can take many form like partisanship, public limited, private limited..... Industry is a part of an economy sector including manufacture or service provider. All similar companies all together are called industry.
What are the three tests that distinguish a winning strategy?
1. The Goodness of Fit Test : A good strategy has to be well matched to industry and competitive conditions, market opportunities and threats, and other aspects of the enterprise's external environment. At the same time, it has to be tailored to the company's resource strengths and weaknesses, competencies, and competitive capabilities. 2. The Competitive Advantage Test : A good strategy leads to sustainable competitive advantage. The bigger the competitive edge that a strategy helps build, the more powerful and effective it is. 3. The Performance Test : A good strategy boosts company performance. Two kinds of performance improvements are the most telling of a strategy's caliber: gains in profitability and gains in the company's competitive strength and long-term market position.
How is the five force apply in cochlear limited?
Porter's Five Forces theory exists as organizational strategy. While it is conditional to a competitive industry it also applies to a pioneer industry such as Cochlear Limited. Five Force in particular is evident in the threats of new extrants, bargaining with buyers, and Cochlear Limited's substitute products.
Is service and quality likely to be better in an industry dominated by a monopoly or in a perfectly competitive industryWhy?
in a perfectly competitive industry
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where -?
perfectly competitive industry become a monopoly， what changes
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
What business or industry is most likely to be found in a perfectly competitive market?
the adult film industry
Is peanut industry perfect competition?
No. There is no perfectly competitive market in real life.
Characteristics of perfect competitive market?
A perfectly competitive market has many competitors. There is no one competitor that has more say in product prices within the industry.
In a perfectly competitive market while an industry is a price maker an individual firm is a price taker elaborate?
An industry is a price maker because many companies compete and the market dictates the price. Companies are price takers because they can't set the prices. Organizations have to focus on keeping cost low.
Marginal cost equals marginal revenue?
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
Suppose that the pen-making industry is perfectly competitive. Also suppose that each current firm and any potential firms that might enter the industry all have identical cost curves with minimum AT?
$1.25.
Distinguish between general equilibrium partial equilibrium analysis?
Partial Equilibrium, studies equilibrium of individual firm, consumer, seller and industry. It studies one variable in isolation keeping all the other variables constant.General Equilibrium, studies a number of economic variable, their inter relation and inter dependencies for understanding the economic system.
What is a purely competitive industry?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero economics profits.
What is the world's most competitive industry?
IT
